Most of the panellists expressed concerns about the loss of passported benefits, which arise at present if a person is awarded Disability LivingAllowance.
It also introduces tougher sanctions for those who refuse work and replaces the disability livingallowance with a new Personal Independence Payment, which requires claimants to go through regular assessments of how their condition affects them.
The UK government has said the Welfare Reform Bill would save billions of pounds by replacing Disability LivingAllowance with a personal independence payment and replacing a range of other benefits with a single universal credit.
The bill also introduces tougher sanctions for those who refuse work and replaces the disability livingallowance with a new Personal Independence Payment, which requires claimants to go through regular assessments of how their condition affects them.
Peers rejected a proposals to require a new assessment regime for Disability LivingAllowance (DLA) to be trialled before it is rolled out to all two million claimants, by 229 votes to 213, majority 16.
The government has already delayed a proposal to remove money designed to fund travel for disabled people in residential care from the existing Disability LivingAllowance.